question_answer

(a) Find the amount of Rs. 50000 after 2 years compounded annually. The rate of interest being 8% p.a. during the first year and 9% p.a. during the second year. Also, find the compound interest.

(b) If (a) decreased value \[=P{{\left( 1-\frac{R}{100} \right)}^{n}}\]   and (b) depreciated value \[=P{{\left( 1+\frac{R}{100} \right)}^{n}}\] then select right answer.

Answer:

(a) Here P=' 50000, \[{{R}_{1}}\] = 8% p.a. and \[{{R}_{2}}\] = 9% p.a

Since,        \[A=P\left( 1+\frac{{{R}_{1}}}{100} \right)\left( 1+\frac{{{R}_{2}}}{100} \right)\]

\[=50000\times \left( 1+\frac{8}{100} \right)\left( 1+\frac{9}{100} \right)\]

\[=50000\times \frac{27}{25}\times \frac{109}{100}\]

Amount =Rs.58860

Therefore                  \[C.I.\text{ }=\text{ }A\text{ }-\text{ }P\]

\[=58860-50000\]

=Rs. 8860

(b) (a) is right answer.